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The Necessity to Improve the Competitive Power of “Bulgarian State Railways - Cargo Freights” Ltd.

S Tzvetkova and E Savova
University of National and World Economy, Sofia, Bulgaria

Abstract—“Bulgarian State Railways - Cargo Freights” Ltd. is the leading association on the Bulgarian market for carrying out railway cargo freights. In recent years, however, the freight volume has decreased and the company has reported negative financial indicators. The changes that have occurred in Bulgarian economy, the market’s liberalization, the impossibility for making investments, the obsolete rolling stock, the deteriorating quality of transport services and the reduced competitive power are among the main reasons for that. The substantiated necessity for increasing the freight volume, improving the financial indicators and retaining the market share is the main motive for writing this paper. To that end, factors from the internal and external environments have been analyzed through the implementation of PESTEL, 5 FORCES and SWOT analyses. For research purposes, a qualitative assessment has been made through a questionnaire survey among consumers of the service. The following conclusions have been drawn: strong competitiveness on the market; unsatisfactory quality; low competitive power; impossibility for carrying out investment policies due to lack of free financial resources. In order to improve competitive power, authors recommend: implementing immediate measures for improving techno-economic indicators by optimizing activities and processes, identifying the excess capacity of non-operating assets and human resources. 
Index Terms—cargo railway transport, measures to increase the competitive power

Cite: S Tzvetkova and E Savova, "The Necessity to Improve the Competitive Power of “Bulgarian State Railways - Cargo Freights” Ltd.," Journal of Advanced Management Science, Vol. 7, No. 2, pp. 77-83 June 2019. doi: 10.18178/joams.7.2.77-83
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